Constellation
Brands Reorganizing International Wines
SAN
FRANCISCO
(Dow Jones) -- Constellation Brands Inc.
(STZB)
Thursday evening said it is reorganizing
its global wine operation as the wines unit
chief retires and the company looks to cut
costs.
Stephen
Millar, chief executive of Constellation
Wines, is retiring Feb. 28, and his position
won't be filled. With Millar's retirement,
Constellation (STZ)
said the timing was right for global wine
reorganization, a move that the company
sees incurring $55 million in pretax charges.
The
Fairport, N.Y.-based alcoholic beverage
producer and marketer expects $24 million
of the charges to be recorded in the fourth
quarter of fiscal 2006, and the rest during
fiscal 2007.
Constellation
noted that it is "streamlining"
United Kingdom operations, primarily through
personnel reductions. Also, within its individual
U.S. wine companies, certain production
processes will be integrated to reduce costs,
Constellation said.
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